Malaysia will increase cigarette prices by the end of this month, following the implementation of the Sales and Services Tax (SST). The prices of tobacco products including cigarettes had to be raised due to an increase in taxes under Regulation 8A of the Tobacco Revenue Control Regulations 2004.
Health Minister Dr Dzulkefly Ahmad said that a Member of Parliament was among eight people fined for smoking in the Parliament building on Monday, the first day the building became a smoke-free zone.
"The recent implementation of the Sales and Service Tax (SST) will cause prices for all types of tobacco products, including cigarettes, to be increased," he told reporters at the Parliament lobby as cited from channelasianews.com.
Dzulkefly confirmed the new price point would be an increase from the current listed retail prices and will differ between different variants of tobacco products.
“This will also take into account the approved selling price points for each separate product before the increase is applied,” he said.
Dr Dzulkefly also announced that Malaysia has raised the minimum age to purchase alcohol to 21 from 18, effective immediately.
Retailers will now be required to display a sign stating that alcohol can be harmful to health, and separate alcoholic drinks from other food or beverages, he added.
Dr Dzulkefly said that the same rules must also be complied with by the organisers of Oktoberfest.
However, eatery owners said their business would be affected by the hike in cigarette prices as well as the increase in minimum purchasing age for alcohol.
Petaling Jaya Coffee Shop Association president Cheah Poo Kuang said such price increases without discussion with stakeholders such as tobacco companies and vendors were “chaotic” for business.
“I don’t know how much the price will go up,” Cheah said as cited from thestar.com.my.
“If it continues to go up, our business will be affected as well, smokers are going to start going to illegal sellers,” said Cheah.
As for vendors having to place signages that only those 21 and above are allowed to buy alcohol, Cheah said the issue was discussed with the Health Ministry last year.
Sources: channelnewsasia.com, malaymail.com, thestar.com.my